British Mandate: A Survey of Palestine: Volume I - Page 350

CHAPTER IX.

92. It will be seen that the total loans issued by Government to cultivators between 1919 and 1939 amounted to £P.907 ,334. Of this amount £P.150,840 had to be written off (about 16%), mostly in respect of the earlier loan issues, owing to death of the borrowers, crop failures and poverty. The amount recovered was £P. 747 ,571 and the balance of loans still due for repayment as at 30th September, 1945, was £P.8,923.

(2). Short term seasonal credit by the banks since 1935.

93. To facilitate the issue of short term seasonal credit by the offer of better security, Government enacted in 1935 a Short Term Crop Loans (Security) Ordinance* whereby an "approved" company or bank may take a charge on the crops of a borrower whether the crop is or is not in existence at the time the charge is created. This Ordinance also provides a simple procedure for the registration of such charges by a District Officer in favour of an approved company for a nominal fee. Adequate penalties are provided against fraudulent disposition of the crop charged, these penalties being intended to act as deterrents. The provisions of this Ordinance have enabled the principal banks and financial institutions, such as Barclays Bank (D.C. & 0.), the Ottoman Bank Ltd., the Anglo-Palestine Bank, the Arab Bank, the Arab National Bank, the Palestine Corporation and the Central Bank of Co-operative Institutions, to make short term seasonal advances of considerable amount - some millions of pounds - to cultivators.

94. The special arrangements made with Barclays Bank (D.C. & 0.) to encourage the development and assist in the financing of Arab co-operative societies in the rural areas are outlined in paragraphs 115 et seq below.

(3). Long term development loans by the Agricultural Mortgage Company of Palestine since 1935.

95. Negotiations were begun in 1933 and completed in 1935 for the establishment of an Agricultural Mortgage Company for the purpose of issuing long term development loans secured on a first mortgage of immovable property. The company commenced business in July, 1935. Of its nominal capital of £P.400,000 the amount paid up is £P .335 ,000; this sum was subscribed by the principal banks, insurance companies and financial institutions doing business in Palestine, as under :-
________________________
* Laws of 1935, Vol. I, p. 133.
Page 350